HomeReady Mortgage - 3% down First Time Home Buyer Program in MN, WI, SD

Only 3% Down Payment needed!


Lack of down payment money is the biggest hurdle for most first time home buyers.


We eliminate that hurdle for low and moderate income buyers with the HomeReady Mortgage from Fannie Mae.

HomeReady lender in MN WI SD


HomeReady Mortgage Loan Benefits


The biggest HomeReady program benefit is clearly the low 3% down payment requirement.


Next is the flexible source of your down payment. It can be:


- Your own money

- Taken from your 401(k)

- Gift from a family member or employer

- Partially from a down payment assistance program


You can potentially use other types of household income to help income qualify for the loan from a non-applicant.


For example: 

- maybe your elderly parents will be living in the home. We might be able to use their social security income to help you qualify. 

- Or how about your spouse has bad credit, but has a job.  we can maybe use their income too without them actually being on the loan application itself.

- Rental income from a single family home may be considered for qualifying


Using non-borrower household member family income greatly extends mortgage and homeownership access to multi-generational families!


Difference From A Standard Conventional Mortgage Loans


Conventional loans are the plain vanilla loan of the mortgage world. Minimum down payment required is 5% down payment and up depending on loan amount needed, owner-occupied home versus rental, credit scores.


HomeReady Mortgage Application MN WI SD


Do I Qualify For a HomeReady Mortgage?


Rather than trying to figure out if you qualify on your own, we suggest you simply complete a full mortgage application.


You can complete a HomeReady Mortgage Application Online 24/7, visit us in our St Paul, MN office, or call (651) 552-3681, and we'll take your application over the phone.


By applying, you are not committing yourself to anything.


Rather, you are simply giving us the information we need to determine if you qualify for the HomeReady mortgage loan, or maybe a different program, how much house you can afford, what your payments might look like, and how much money you may need to make it all come together.


If it all looks good, you'll be given a Lender Pre-Approval Letter, and put in touch with a local Real Estate Agent to go find your dream home.


What About Paying Loan Closing Costs


All mortgage loans have closing costs. Lender fees, appraisal, credit report, title company, county recording fees, state deed taxes, origination fees, initial homeowners insurance, and more.


These costs need to be paid for by you the home buyer. The best way is always for the buyer to pay cash.  But as most first time home buyers have limited funds, you are also allowed to roll the closing costs into the loan with "seller paid closing costs." 


You can also pay them by taking a slightly higher interest rate. Under these two options, you are still paying for the closing costs, but you are essentially paying over time versus having to need more cash out of pocket today. How cool is that?


Should I Rent or Own?


Homeownership has many benefits. Having a secure place of your own to raise your family. Having a home you can do anything you want with it; paint, decorate, you name it.


You have tax benefits by being able to write off the interest you pay on your taxes, and are able to build up equity and increase your net worth.


First Time Home Buyer Education Classes - Required??


Not all first time home buyer programs required homebuyer education classes, but if you are getting down payment assistance, then you will need a class.


While we think these classes are beneficial to most new home buyers, before taking a class, contact us to determine if one is even needed.


If you need a class for your loan, we will direct you the required class.


TIP: Classes put on by Real Estate Agents do NOT count, and are really more of a sales gimmick to get you to use that agent.


Unacceptable Credit Items for First Time Home Buyers


Different mortgage loan programs have different credit criteria.  You may qualify for one program, but not another. If you have any of the following items, you probably are not ready to buy a home today regardless of the program:


- Poor Credit (middle credit score BELOW 620)

- Delinquent Government Debt (back taxes, student loans)

- Large or multiple unpaid collection accounts

- More than 2 late mortgage or rent payments in the past 12 months

- Unpaid Tax Liens (must be paid off to buy)

- Foreclosure less than 3-years old

- Bankruptcy Chapter 7 less than 3-years old

- Bankruptcy Chapter 13 less than 1-year old


First Time Home Buyer Loan Application


Ready?  We can take your loan application by calling our  Loan Experts at (651) 552-3681, you can fill out the First Time Home Buyer Loan Online Application, or you can visit us in our Office in St Paul, MN.


Home Ready Mortgage Loan Application WI MN SD


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Need More Information

Call Us: (651) 552-3681
Email Us: jmetzler@muihomeloans.com
Apply: Click Here

Approved FHA Lender, VA Lender, and USDA Lender in MN, WI, SD

HUD, The VA, and the USDA requires those who offer their mortgage loans go through a stringent approval process. We are an approved FHA, VA, and USDA mortgage lender. We are not acting on behalf of, or under the direction of the VA or the Federal Government. HUD / FHA and the VA do not lend directly to the public, only through approved lending institutions like Mortgages Unlimited. We lend in Minnesota, Wisconsin, and South Dakota.


First Time Home Buyers are anyone who has NEVER owned a home previously, or someone who has not had any ownership interest in a home in the past three years.